Changes

The demand curve is '''''downward sloping''''': the higher the sales price, the '''''lower'''''  the quantity that people are willing to buy.  Few people will buy a candy bar if it costs $5: if that price is lowered to $2, then more people will want to buy it, and if its price is lowered to $1, then even more will want to buy it, and if its price is lowered to 50 cents, then the demand by the public for that candy bar will be greater still.  As the price for something goes down, the demand goes up.  That results in a downward-sloping demand curve:  as the price goes down the slope of the curve, the '''''quantity''''' demanded (sought) by the public goes up.

The demand curve is '''''downward sloping''''': the higher the sales price, the '''''lower'''''  the quantity that people are willing to buy.  Few people will buy a candy bar if it costs $5: if that price is lowered to $2, then more people will want to buy it, and if its price is lowered to $1, then even more will want to buy it, and if its price is lowered to 50 cents, then the demand by the public for that candy bar will be greater still.  As the price for something goes down, the demand goes up.  That results in a downward-sloping demand curve:  as the price goes down the slope of the curve, the '''''quantity''''' demanded (sought) by the public goes up.

The supply and demand is the most basic relationship in all of economics.  They have independent of each other, but are placed on the same graph so that it becomes easy to find where they have the identical value for price and quantity (the point of the intersection of their curves).  The supply and demand curves usually look like this:

The supply and demand is the most basic relationship in all of economics.  They have independent of each other, but are placed on the same graph so that it becomes easy to find "equilibrium": the point where supply and demand have the same value for their price, and the same value for their quantity (the point of the intersection of their curves).  This equilibrium is the point for the price and quantity of the good in a free market. 

 

The supply and demand curves usually look like this:

[[Image:Supply_and_demand.gif]]

[[Image:Supply_and_demand.gif]]